Credit Flashcards
What is character?
Have you used credits before? have you paid your bills on time? how long have you lived at your present address?
What is capital?
Do you have a savings account or any investments?
What is capacity?
Do you have a steady job? do you own a house? how much is it worth?
What is single payment credit?
The trio bill that comes from crossing the Port Mann Bridge
What is instalment credit?
Buying a car with monthly payments
What is revolving credit?
Using your Visa to pay for a trip to Jamaica when you don’t have enough money
What is single payment credit
Your TELUS phone bill
What is single payment credit?
Paying for a video game with a credit card than paying it off within the grace period
What is revolving credit
Paying for a video game with a credit card then paying off the total amount over the next few months
What does APR stand for
The annual percentage rate
What is your current balance
It’s a name for how much you currently owe to your creditors
What is your credit limit
The maximum amount of credit that your credit card company will allow you to use in total
Available credit
The word that describes how much credit you have left
What is a cash advance
The term that is used to describe when youse your credit card to aka out money from an ATM ( and pay through the nose for it!)
What is a periodic rate?
The amount of effective interest ( how mush you will pay per month)
What is the most common reason that people miss payments, it can include loss of job, injury, death or divorce
Loss of income
Two ways that people can overextend themselves financially
Spending too much/impulse buying, or emergencies
When you can no longer pay debts, your assets are liquidated and your credit history is heavily impacted
Bankruptcy
What is the term for when the court orders that part of your paycheque be deducted and given directly to your creditors
Wage Garnishment
When a debtor does not have a job, so creditors repossess their assets
Wage attachment
History that shows all loans that you have taken out, along with any delinquencies
Credit report
The maximum amount of your monthly income (after rent) that you should be spending to service your credit
10%
Loans taken out for school, these will follow you through bankruptcy
Student loans
The name of a home loan that comes from the French word for death
Mortgage
The term for someone who vouches for someone else’s credit ( your parents will need to do THIS for you if you get credit before you are 19)
A co-signer
